Introduction :: ALBANIA

Albania declared its independence from the Ottoman Empire in 1912, but was conquered by Italy in 1939, and occupied by Germany in 1943. Communist partisans took over the country in 1944. Albania allied itself first with the USSR (until 1960), and then with China (to 1978). In the early 1990s, Albania ended 46 years of xenophobic communist rule and established a multiparty democracy. The transition has proven challenging as successive governments have tried to deal with high unemployment, widespread corruption, dilapidated infrastructure, powerful organized crime networks, and combative political opponents.

Albania has made progress in its democratic development since first holding multiparty elections in 1991, but deficiencies remain. International observers judged elections to be largely free and fair since the restoration of political stability following the collapse of pyramid schemes in 1997; however, most of Albania's post-communist elections have been marred by claims of electoral fraud. Albania joined NATO in April 2009 and in June 2014 became a candidate for EU accession. Although Albania's economy continues to grow, it has slowed, and the country is still one of the poorest in Europe. A large informal economy and an inadequate energy and transportation infrastructure remain obstacles.

chief of state: President of the Republic Bujar NISHANI (since 24 July 2012)

head of government: Prime Minister Edi Rama (since 10 September 2013)

cabinet: Council of Ministers proposed by the prime minister, nominated by the president, and approved by parliament

elections: president is elected by the Assembly for a five-year term and is eligible for a second term (a candidate needs a three-fifths majority of the Assembly's 140 votes (84 votes) in one of the first three rounds of voting or a simple majority in round four or five to become president; up to five rounds of voting are held, if necessary); four election rounds held between 30 May and 11 June 2012 (next election to be held in 2017); prime minister appointed by the president on the proposal of the party or coalition of parties that has the majority of seats in the Assembly

description: unicameral Assembly or Kuvendi (140 seats; members directly elected in multi-seat constituencies by proportional representation vote to serve 4-year terms); note - in late 2008, Albania replaced its mixed member electoral system with a proportional representation system

note: seats by parliamentary group as of April 2015 - ASHE 88, APMI 50, 2 - outside of the majority and opposition groups

highest court(s): Constitutional Court (consists of 9 judges, including a chairman); Court of Cassation (consists of 14 judges, including the chief justice)

judge selection and term of office: Constitutional Court judges appointed by the president with the consent of the Assembly to serve single 9-year terms; chairman elected by the People's Assembly for single 3-year term; Court of Cassation judges, including the chairman, appointed by the president with the consent of the Assembly to serve single, 9-year terms)

red with a black two-headed eagle in the center; the design is claimed to be that of 15th-century hero George Kastrioti SKANDERBEG, who led a successful uprising against the Ottoman Turks that resulted in a short-lived independence for some Albanian regions (1443-78); an unsubstantiated explanation for the eagle symbol is the tradition that Albanians see themselves as descendants of the eagle; they refer to themselves as "Shqiptare," which translates as "sons of the eagle"

Economy :: ALBANIA

Albania, a formerly closed, centrally-planned state, is a developing country with a modern open-market economy. Albania managed to weather the first waves of the global financial crisis but, more recently, its negative effects have put some pressure on the Albanian economy, resulting in a significant economic slowdown. While the government is focused on establishing a favorable business climate through the simplification of licensing requirements and tax codes, it entered into a new arrangement with the IMF for additional financial and technical support. Remittances, a significant catalyst for economic growth, declined from 12-15% of GDP before the 2008 financial crisis to 5.7% of GDP in 2014, mostly from Albanians residing in Greece and Italy. The agricultural sector, which accounts for almost half of employment but only about one-fifth of GDP, is limited primarily to small family operations and subsistence farming, because of a lack of modern equipment, unclear property rights, and the prevalence of small, inefficient plots of land. Complex tax codes and licensing requirements, a weak judicial system, endemic corruption, poor enforcement of contracts and property issues, and antiquated infrastructure contribute to Albania's poor business environment and make attracting foreign investment difficult. Inward FDI has significantly increased in recent years as the government has embarked on an ambitious program to improve the business climate through fiscal and legislative reforms. Albania’s electricity supply is uneven despite upgraded transmission capacities with neighboring countries. Technical and non-technical losses in electricity - including theft and non-payment - continue to undermine the financial viability of the entire system, although the government has taken steps to stem non-technical losses and begin to upgrade the distribution grid. Also, with help from international donors, the government is taking steps to improve the poor national road and rail network, a long-standing barrier to sustained economic growth. The country will continue to face challenges from increasing public debt, having exceeded its former statutory limit of 60% of GDP in 2013 and reaching 72% in 2014. Strong trade, remittance, and banking sector ties with Greece and Italy make Albania vulnerable to spillover effects of debt crises and weak growth in the euro zone. The government will face critical tests in 2015 as it works to implement IMF-mandated reforms, especially those aimed at improving the electricity sector.

domestic: offsetting the shortage of fixed-line capacity, mobile-cellular phone service has been available since 1996; by 2011, multiple companies were providing mobile services, and mobile teledensity had reached 100 per 100 persons; Internet broadband services initiated in 2005, but growth has been slow; Internet cafes are popular in Tirana and have started to spread outside the capital

international: country code - 355; submarine cable provides connectivity to Italy, Croatia, and Greece; the Trans-Balkan Line, a combination submarine cable and land fiber-optic system, provides additional connectivity to Bulgaria, Macedonia, and Turkey; international traffic carried by fiber-optic cable and, when necessary, by microwave radio relay from the Tirana exchange to Italy and Greece (2011)

3 public TV networks, one of which transmits by satellite to Albanian-language communities in neighboring countries; more than 60 private TV stations; many viewers can pick up Italian and Greek TV broadcasts via terrestrial reception; cable TV service is available; 2 public radio networks and roughly 25 private radio stations; several international broadcasters are available (2010)